Samsung launches world’s largest mobile phone factory in India

Noida now has the largest mobile factory in the world

Cecil Davis
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09 July, 2018, 14:24

Samsung has opened a brand new 35-acre Electronics facility at Sector 81 in Noida, Uttar Pradesh.

Samsung now manufactures over 60 million smartphones annually in India and with the new plant, it is expected to manufacture almost 120 million mobile phones. South Korean President Moon Jae-in will also grace the event alongside the Prime Minister.

Samsung has two manufacturing plants - in Noida and in Sriperumbudur, Tamil Nadu - five R&D centres, and one design centre in Noida, employing over 70,000 people and expanding its network to over 1.5 lakh retail outlets. The plant started with the manufacture of televisions way back in 1997, and the mobile phone manufacturing unit was added in 2005. Both leaders are visiting the facility adjoining New Delhi, according to India's ministry of external affairs.

As a result of the latest investment in the Noida factory, the production capacity of smartphones is expected to rise to 12 million units a month from the existing 5 million.

Samsung's new 35-acre facility in Sector 81, Noida, Uttar Pradesh will be one of the biggest in the world. To be clear, Samsung has had manufacturing in India for over two decades.

The new Samsung factory will have the capacity to assemble 120 million smartphones per year, and make everything from low-end handsets that cost under US$100 to its flagship S9 model, according to the company. India is a big opportunity across price segments, including 2G feature phones.

India's smartphone market grew 14 per cent with total shipments of 124 million units a year ago, the fastest pace of growth among the world's top 20 markets, according to technology research firm IDC. Chinese smartphone maker Xiaomi Corp. said in April it will set up three more factories in India.

How many manufacturing plants does Samsung have in India?

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"This will help Samsung bring some local features to the devices powered by R&D here".

Moon, who arrived in New Delhi on Sunday on a four-day visit to India, is expected to meet Lee Jae-yong, the son and heir of Samsung's current chairman Lee Kun-hee, for the first time since he took power in May previous year. "It makes sense for Samsung to build a bigger manufacturing base here", Jaipal Singh, Senior Market Analyst, IDC, told IANS. After smartphones, they can go into building top-of-the-line products in other categories like TVs, refrigerators as advance manufacturing in India still lags behind.